Although there is a general appreciation about the importance of data, relatively few organisations and businesses have implemented the requisite systems in order to capitalise on the benefits, such as improved competitiveness, innovation and disruption, that can eventuate. In this article, we highlight five tips through which organisations can better leverage the data they possess and can access.
The saying ‘data is the new oil’ has been around for a few years, but many organisations, especially in the Caribbean are still paying lip service to saying, and have not yet begun to mine the benefits of the data they already collect, or can easily generate. Thanks to the Internet, increasingly, organisations, which includes businesses, are required to compete for customers globally, and need to capitalise every opportunity.
Data is a crucial component through which organisations can improve their competitive advantage. Data can also facilitate disruption and innovation: but the effort must be made to tap into that resource. Below are five tips organisations can implement to help them better leverage the data they possess, and can access.
1. Conducted a data audit
It might seem obvious, but to a considerable degree, we might not be truly aware of all the sources of data in our organisations. Some might be readily available, whilst others might need additional thought and resources in order to properly extract it. Hence, one of the first order of business is to get a good sense of the data set that can be generated; their associated formats; and some of the possible outputs (or information) that can be generated when that data is processed.
Conducting an initial data audit will help management to begin to understand the breadth and depth of the data that the organisation can generate. More importantly, the team should also begin to have an appreciation of how through leveraging that data, the organisation’s performance could improve.
2. Prepare a data strategy
Having conducted the data audit, the next step would be to examine the organisation’s strategy and develop a data strategy. It is emphasised that the data strategy would be informed, and would be underpinned by the organisation’s overarching strategy, as its goal is to help the organisation achieve the goals and targets specified in the latter.
The data strategy should thus aim to manage risks, whilst improving outcomes. However, it would also be beneficial also develop metrics against which implementation of the data strategy can be properly monitored and evaluated.
3. Establish policies and standards
When data is seen as an asset to an organisation – an important strategic tool – it is prudent that little is left to chance, and that all parties are clear about its role within the organisation. Accordingly, it is recommended that policies, guidelines and standards be established that address, among other things,
- data use with the organisation
- privacy and data protection
- data retention, loss and recovery
- information and data sharing across the organisation
- conflict resolution.
In countries that have legislation that address certain data- and/or information-related aspects, these internal structures ought to be aligned with that legal framework. Additionally, if the organisation, for example, conducts business with European Union residents, it may be necessary for its policies and standards to also be considered against, and possibly aligned with, the General Data Protection Regulation (GDPR) framework.
4. Staff capacity building
Since the recognition of data as an asset within the organisation might be new, some capacity building across the organisation would be necessary. In the first instance, the exercise could comprise sessions geared towards increasing staff members’ appreciation of the data generally, and its strategic importance to the organisation. However, it is expected, and adequate provisions ought to be made, to facilitate access to more intensive and formal programmes in data management and data management tools, for staff members that generate and manipulate data.
It is emphasised that although specific data-related roles and positions can (and eventually should) be created, due to the rapid changes occurring in that area, regular updating of skills ought to be encouraged. Hence although staff members may already possess certain data management-related qualifications, the organisation ought to support their continuous professional development.
5. Appoint a Chief Data Officer
Finally, as the scope and potential impact of data becomes clearer within an organisation, there is likely to come a point where the associated responsibilities cannot be tacked on to a existing position, such as the Management of Information Systems (MIS) department head, or the Chief Operating Officer. The Chief Data Officer would have responsibility for, among other things, ensuing that organisation’s data is properly collected, synthesized into information, and managed. However, s/he would also be required to continually examine the organisation’s data strategy, and identify ways and means through which to maximise the resources at organisation’s disposal to ensure it remains competitive, efficient and effective.
It is highlighted that establishing a dedicated data management position, and the requisite support team, would require adjustments to the current organisational structure. It would also be crucial for that team to be adequately equipped and resourced, which would require important budgetary considerations.
In summary, as the global business landscape continues to be competitive, we can longer afford to be nonchalant about data, and leveraging data to benefit an organisation, or a country. The above tips are just some initial steps and considerations. Each of them can be further developed, and customised to suit the needs of the organisation and the industry in which it operates.
Image credit: Photo by Lukas from Pexels
The concept of having someone in charge of data is particularly significant.
Some organisations I have seen that have Data Managers basically turn out to be nothing more than someone in charge of report writers/generators or managing data warehousing applications ( business intelligence, data systems etc ). That would be a gross misunderstanding of a Data Chief.
This should be someone in a senior leadership role charged with providing guidance and strategic oversight to the organisation on everything listed above and and indeed much, much more.